Landshypotek Bank’s AT1 instrument downgraded

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S&P Global Ratings is downgrading Landshypotek Bank’s AT1 instrument from BB+ till BB.

The downgrade of the AT1 instrument is a result of the implementation of the Swedish Financial Supervisory Authority's amended rules on mortgage risk weights, moving it from Pillar 2 to Pillar 1.

Although this change does not directly affect the regulatory capital requirements in nominal terms of the bank, nor S&P’s measure of risk-adjusted capital and overall creditworthiness of the bank, it reduces the regulatory capital ratios. According to S&Ps criteria the bank should have a buffer of 700 basis points over the mandatory conversion trigger point. Due to the amended rules S&P now expect the CET1 ratios for the bank to be less than 700 basis points above the mandatory conversion trigger of the instrument.

The other credit ratings of Landshypotek Bank are unchanged and the AT1 instrument is now removed from negative credit watch.

Contact for further information
Åke Källström, Head of Treasury, +46 70 676 04 87,

For further information and comments, please contact:
Tomas Uddin, Chief Communications Officer at Landshypotek Bank, 46 70 299 24 08

About Landshypotek Bank
Landshypotek Bank was founded in 1836 and is one of the ten largest banks in Sweden. The bank focuses on loans and savings to its customers, who borrow for investments in land and forestry. Moreover, the bank is owned by these 39,000 customers within land and forestry, who are organized into one association. By strengthening the farming and forestry sectors, the bank and its customers promote locally produced food and Swedish forest products. Landshypotek Bank has some 190 employees at 19 locations in Sweden. Visit